W.P. Carey price target lowered to $54 from $67 at BofA

BofA lowered the firm’s price target on W.P. Carey to $54 from $67 and keeps an Underperform rating on the shares. The firm is negative on the plan to spin off its office assets and externally manage the new REIT and is “not convinced this is the best strategy,” given it results in considerable earnings dilution, the company will continue to manage the office assets and the firm does not believe W.P. Carey will re-rate higher or show better growth post spin off. After updating the firm’s model for the spin off the company’s office assets into a SpinCo and remaining office asset sales, BofA is lowering its 2024 AFFO forecast to $4.90 from $5.56.